CPCV

The CPVC - Property Purchase and Sale Agreement is used in all transactions in Portugal, and is legally binding for both parties. This should express all the terms and conditions of purchase and sale. This agreement will establish, in detail , all the procedures by which the transaction will be performed and the conditions of sale. The document might contain the following information:

• The definition of the buyer and seller
• The clear property title
• The maximum time allowed for completion
• The payment schedule
• The standard penalty clauses in the event that either party does not fulfill the contract
• And, if applicable, an inventory list can also be attached

Generally, it is the buyer's lawyer that prepares the CPVC. This time frame allows the buyer's laywer to conduct reseach and to acumulate all the official documentation of the property in question. Ensuring that there are no outstanding debts against it, such as cost of infrastructure maintenance fees, property taxes or condominium expenses, for example.

Upon signing this contract a deposit payment is made, this is usually 10% of the final purchase price (or an amount stipulated and agreed between both parties). This value will be deducted from the purchase price upon the signing of the final purchase deed. This signal provides a legal guarantee for both the buyer and the seller. Whereby, if there is a breach of contract by the first party they will lose the deposit payed; if the failure occurs by the second party, the first will be entitled to double the amount initially paid for the deposit. This contract can be signed personally by the parties or their legal representatives; and is usually signed by both parties in the presence of a notary or lawyer.

Other important steps of the Purchasing Property Process in Portugal:

• The Purchasing Property Process
• The Property Booking for Purchase
• Deed and Property Registration
• Living the Dream. Living in the Algarve!